By Apratim Purakayastha, GM of Talent Development Solutions at Skillsoft
Artificial Intelligence (AI) is rapidly becoming a key driver of business performance in the financial services and banking (FS&B) sector. With 89% of UK financial firms now investing in AI, the industry is already embracing a technology-led future. From fraud detection and risk management to hyper-personalised customer experiences, AI is transforming how financial institutions operate and compete.
Yet, despite this momentum, a critical challenge remains: over half of financial firms report that their workforce lacks sufficient training in generative AI. This skills gap poses a serious risk to the sector’s ability to scale AI initiatives effectively and responsibly.
The urgency to address this issue is growing. According to PwC’s 2025 Global AI Jobs Barometer, skills for AI-exposed jobs are changing 66% faster than for other positions – over 2.5 times the paces seen just a year ago. This rapid shift is fundamentally reshaping job functions across the financial sector, requiring employees to continuously adapt and acquire new capabilities to succeed in an AI-powered workplace.
To truly capitalise on the potential of AI, financial institutions must go beyond investing in tools and invest in people. This means implementing scalable learning and development programmes that empower employees at every level – from C-suite executives and portfolio managers to compliance teams and customer service representatives – with the skills needed to work alongside AI. Bridging this knowledge gap is essential for not only developing trust and ensuring responsible AI adoption but for enabling smarter decision-making across the organisation.
So, what strategic steps can FS&B leaders take to effectively close the AI skills gap and foster a culture of AI literacy across their workforce?
The AI literacy imperative in finance
AI literacy is becoming a critical enabler of long-term competitiveness in the FS&B sector. But it should be viewed as a starting point, not the end goal. While it’s essential for IT and data teams in financial institutions to understand key concepts such as ethical AI, data privacy, regulations and the mechanics of large language models, true AI readiness requires a broader organisational shift in mindset.
When finance professionals across the business understand how AI can augment their roles, they are more likely to trust, adopt and champion these tools. This understanding also empowers them not only to use AI effectively but also to identify new opportunities for AI integration, driving innovation and value creation across the organisation.
To meet this challenge, FS&B firms must build a culture of continuous learning, adaptability and innovation. This involves investing in both technical capabilities and in the development of critical ‘power skills’ such as critical thinking, collaboration and problem-solving that will enable employees to navigate the evolving complexities of the sector.
A roadmap to AI literacy
The ability to understand and apply AI across all levels of financial institutions is no longer optional – it’s essential. To close the widening gap between AI investment and workforce readiness, financial institutions must adopt a hands-on, structured approach to AI upskilling that is both strategic and comprehensive.
This can be accomplished through the following steps:
- Assess employee skillsets
Before launching any AI literacy programmes, FS&B firms must evaluate their workforce’s current skillsets, specifically their knowledge and understanding of AI. This involves assessing awareness of AI concepts, data literacy and regulatory understanding through surveys, focus-groups or formal assessments.
It’s crucial that employees view these assessments as a starting point for growth and not as a performance review. This approach helps build trust and support the development of personalised learning paths that benefit both individuals and the organisation.
- Create a clear, shared vision
AI literacy must be rooted in purpose and finance professionals need to understand how AI supports the organisation’s strategic goals. Leaders should communicate a clear, jargon-free vision of how AI will enhance and not replace human roles. When employees see AI as a tool that empowers them, they will be more likely to engage and innovate.
This vision must also include a shared understanding of what constitutes responsible and ethical AI use. Financial institutions should establish a company-wide policy that defines safe AI practices, outlines approval processes for new tools, and ensures compliance with evolving regulatory standards. Embedding these principles into the organisation’s AI vision helps build a culture of trust and accountability, reinforcing that AI is not only a tool for innovation, but one that must be used with care and integrity.
- Balance hiring with upskilling
While hiring new talent is important, it’s not always feasible or sustainable in a highly competitive market. Instead, financial firms should focus on building internal capabilities by mapping how AI will reshape roles and designing tiered learning paths, including:
- Foundational: AI basics, ethics and compliance for all employees
- Functional: Role-specific applications for teams in areas like lending, trading and compliance
- Technical: Advanced training for data teams and analysts
Effective learning programmes should include hands-on learning experiences and be supported by instructor-led training to help with more complex topics.
- Measure what matters
To maintain momentum, financial institutions must monitor both individual and organisational progress. This includes tracking participation in training, AI tool adoption, employee feedback and tangible business outcomes like improved efficiency, faster decision-making or enhanced customer satisfaction. Regularly measuring these indicators helps refine AI strategies, demonstrate impact and reinforce AI literacy as a key driver of performance and innovation.
Staying ahead of change: From literacy to lasting impact
AI is advancing at an unprecedented pace. For FS&B firms to remain competitive, AI literacy needs to not only be treated as a technical requirement but a cultural priority. This demands strong leadership commitment, clear communication and a culture of continuous learning.
Without visible leadership support, AI adoption risks becoming fragmented, creating a disconnect between strategic goals and workforce readiness. True transformation happens when AI is embraced across every level of the organisation, empowering employees to adapt, innovation and contribute meaningfully to the firm’s future. When AI literacy becomes part of the organisational culture, FS&B firms are empowered to lead with innovation, trust and can shape a more resilient financial future.
